Medicare Physician Payment


Currently, physicians are paid for their services to Medicare patients by means of the flawed Sustainable Growth Rate (SGR) formula. The SGR produces negative payments based on unrelated economic factors, not on the health care needs of Medicare beneficiaries or physicians’ costs of providing care.

For over a decade, Congress regularly has found it necessary to override this dysfunctional formula, a testimony to its inappropriateness..

A bipartisan bill was recently introduced that was supported by all of organized medicine. The cost of repeal and reform is at an all-time low and less than the cumulative cost of Congressional action over the past 12 years. There is a growing desire during the lame duck session of the 114th Congress to act.

After 17 "doc fixes" at a cumulative cost of $169.5 billion for temporary solutions to repeal and replace the broken Sustainable Growth Rate (SGR) formula, AAFP continues to urge intensified efforts to permanently repeal the SGR formula during the 113th Congress.

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